What would happen to consumer surplus, producer surplus and deadweight loss if the government stops subsidizing a product? Graphically illustrate
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A: Note: Since you have posted a question with multiple subparts, we will solve the first three…
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Q: Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the…
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A: This can be explained by a graph below:
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- The United States government subsidizes many so-called green companies. For instance, it has given millions of dollars to solar panel companies. In the market for solar power, illustrate what the government subsidies mean.Illustrate an example of your choice and discuss consumer surplus, producer surplus, Total surplus, and deadweight loss with the help of the graphs.Beginning with the initial equilibrium, suppose the government sets the price of a pound of almonds at $14. On a graph, identify consumer surplus, producer surplus, and the deadweight loss.
- Plot the supply and demand functions on a sheet of graph paper. Suppose the government sets a price control for a pound of almonds at $14. On the graph, identify consumer surplus, producer surplus, and the deadweight loss.Define consumer surplus and producer surplus. What is meant by economic efficiency, and how does it relate to the gains of consumers and producers?Identify at least one positive externality from running a donut shop. Identify at least one negative externality from running a donut shop. Explain how these positive and negative externalities could impact the donut shop’s profits. (Hint: think subsidy for positive externality and tax for negative externality.) Draw two graphs that show the price of donuts before and after the positive and negative externality impacted the price of your donuts.
- What happens to total surplus when producer surplus decreases and consumer surplus increases?Illustrate and explain what is meant by consumer surplus and producer surplus at market equilibrium..The graph above is for the market for broadband home internet. The regulator recently levied a $10 excise tax on the internet service providers. What area(s) in the graph identify the loss of producer surplus due to the tax? d + e + f d + e e d
- The demand and supply of ethanol are given by QD = 8,000 – 2,000P and QS = 1,000P – 1,000, where P is price per gallon and Q measures gallons per minute. Suppose the government subsidizes ethanol at $0.30 a gallon that the producer pays. What does the subsidy cost the government? After the subsidy, what is the producer surplus? After the subsidy, what is the consumer surplus? After the subsidy, what is the deadweight loss?Suppose government impose a tax of 1 dollar per bottle on sellers of industrial detergent. Explain 3 dimensions in which you can explain the effect of this tax.The price of a shirt is $20. Charlie can produce a shirt at a marginal cost of $10, Mac can produce a shirt for $18, and Dennis can produce a shirt for $22. For a shirt, Deandra has a marginal benefit of $25. Frank has marginal benefit of $20, and Artemis has a marginal benefit of $18. Which of the following statements is correct? The sum of consumer surplus is $5 and the sum of producer surplus is $12. The sum of producer surplus is $10. Only Frank and Artemis will purchase a shirt. The sum of consumer surplus is $12. Only Dennis will produce a shirt.